Baijiu Market is anticipated to grow at a CAGR of 5% during the forecast period 2018-2023

September 17, 2018

According to the new market research report by IndustryARC titled “Baijiu Market: By Price (Low-end, Standard, Economy, Premium, Super Premium), By Type (Thick Flavor, Sauce-Flavor, Liquid-flavor,Others); By Applications (Corporate Hospitality, Government Reception, Family Dinner, Other); & Geography – (2018-2023)”, the market will be driven by the increasing millennial population in China.
Asia Pacific Holds the Largest Market Share in the Baijiu Market
APAC region holds the largest market share in the Baijiu Market. The Baijiu Market in APAC region is driven by the increase in the purchasing power of average consumer. The key applications in this region are Corporate Hospitality and Government Reception among others.

Selected Product Analysis Done in the Full Report

In China, Baijiu, a sorghum drink has such a huge and humongous market that it commands a huge market share. That accounts for more than 50% of the total market share. To be precise, one in two alcoholic drinks sold in China is Baijiu.

Maotai liquor has a special reputation as China’s national liquor due to its political and cultural importance. This liquor is considered as the drink of diplomacy that is used to toast political figures, including the President of United States of America, Richard Nixon, on his landmark trip to China, in 1972.

Baijiu Market is fairly complex, as there are a wide variety of Baijius in the market, and each Baijiu brand fits into a specific market segment. For instance, super cheap value Baijius comprise very low share of the Baijiu market; standard price Baijius comprise of huge share of the market.

Baijiu accounts for 99% of liquor sales in China, but it is barely known abroad. But now Baijiu makers have started planning to widen their scope into European and United States Markets in order to internationalize its brand value. As a part of that, Maotai reportedly spent $11.76 million to establish its Paris store. More international locations are planned.

Excerpts on Market Growth Factors

The increasing demand for Baijiu in the US has led to the opening of cafes offering only Baijiu drinks.

The sales of standard Baijiu which is priced between $20-40 is gaining traction across middle-class populace. Needless to say, it is ultimately steering the market.

As a result of Baijiu’s stellar sales, Baijiu brands are extremely valuable. For instance, Moutai has a brand value of $2.4 billion, while Wuliangye is worth $1.6 billion and Luzhou Laojiao is worth $1.5 billion.

According to the World Bank Data, millennials account for more than 30% of the total Chinese population, which is expected to influence the growth of the market during the forecast period.

To access the full report browse the link below
https://industryarc.com/Report/17813/baijiu-market.html

Key players of Baijiu Market:

Kweichow Moutai was ranked first among the top 10 Baijiu brands. While Baijiu rivals (Wuliangye and (Shujingfang) are ranked second and sixth, the historical and cultural value of Maotai liquor secured its reputation as the top Chinese luxury brand both domestically and internatinoally. In 2017, Kweichow Moutai’s brand cap hit $71.5 billion, making the company the world’s most valuable liquor distillery. The popular Chinese Alcohol Kweichow Maotai is expected to reach $35 billion in 2018. The regional players have strong market presence which makes it tough for global players to improve their market share.

About IndustryARC:
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